(a) Reserve Basis. The Tier 2 System shall be maintained on a reserve basis which, for the purposes of this Tier 2, shall mean one which provides for the accumulation and maintenance of the Fire and Police Tier 2 Service Pension Fund and the Fire and Police Tier 2 General Pension Fund which together will at all times be equal to the difference between the present value of the obligations assumed and the present value of the money to be received for paying such obligations, where such present values are estimated in accordance with accepted actuarial methods and on the basis of an assumed rate of interest and the mathematical probabilities of the occurrence of such contingencies as affect both the payment of the assumed obligations and the receipt of moneys with which they are to be paid in accordance with the provisions of Sections 1210(b)(2) and 1420.
(b) Actuarial Valuation. The Board shall secure an actuarial valuation showing the cost of maintaining the System and funds on such reserve basis and, at intervals of not to exceed five years, shall cause to be made an actuarial investigation including, but not limited to, the mortality, service and salary experience of the System Members and other beneficiaries and shall further cause to be made annually an actuarial valuation of the assets and liabilities of the funds. The Board shall retain a competent consulting actuary for the purpose of making the necessary actuarial studies and reports on the required investigations and valuations.
(c) Interest Rate. The Board, from time to time and with the advice of the investment counsel, shall establish an assumed interest rate as in its judgment seems proper in the light of the experience and prospective earnings on the investments of the funds.
(d) Unrealized Profits or Losses. With the advice of the consulting actuary and of the investment counsel, the Board, for the purpose of the actuarial valuations, shall provide by rule for the manner and to the extent to which any unrealized profits or losses in the equity-type investments of the funds shall be taken into account.